Friday, January 17, 2014

Spotify, Rdio Go Free Ad-Supported

A day after Spotify said it would remove all caps on free ad-supported music listening on the web, fellow on-demand music service Rdio followed suit, according to The Verge.

 Previously, Rdio offered listeners ad-supported (sold by Cumulus) streaming for a limited time that varied depending on how much you listened. As of Thursday, it has removed all caps.

Rdio, which has struggled to keep pace with Spotify's user growth and fundraising, will support its free listening option with ads. In between songs, free listeners will hear announcements about new features, Rdio exclusives, and tips for using the service in addition to traditional ads.

Spotify and Rdio made their announcements days before the high-profile launch of Beats Music, a subscription service from the makers of Beats headphones. Beats, unlike its competitors, won't offer a free tier beyond a 7-day trial. That creates an opportunity for other music services to draw in more casual users and sell them the paid service over time — and as of today, it's an opportunity that Rdio is seizing, according to The Verge.

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